Folders and Documents Issue

Whenever I create a new text or folder, it never appears inside the Parent folder that I’m wanting it to be, it’s always outside below the selected section, how do I make it so that when I select a folder to have a new folder or text placed inside, it actually go inside?

In Scrivener Version 3 the setting is Preferences > Behaviours > Folders & Files > Always create new items as siblings.

It’s also somewhere in the V2 preferences, but I can’t remember where, sorry…